Owatonna-based Truth Hardware to be Sold for $200M
On Wednesday, a London-based manufacturer of building products for the door and window industry agreed to pay $200 million in cash for Owatonna-based Truth Hardware.
The company, Tyman PLC, will purchase Truth Hardware from its parent company, Melrose Industries PLC, a London investment firm. Simon Peckham, CEO of Melrose, said in a statement that the company is “disposing of Truth at the early stages of what appears to be a recovery in the United States housing market.”
The acquisition is expected to be completed in June, according to a Melrose statement.
Founded in 1955, Truth Hardware produces door and window hardware including hinges, handles, and motorized operators for windows and skylights. It reported $126 million in 2012 sales—down from its 10-year sales peak of $167.8 million, according to Tyman—and it employs 700 people, 625 of whom are based in Owatonna. It also operates a facility in a suburb of Toronto.
Tyman said that Truth Hardware is a good strategic fit with its Amesbury, Massachusetts-based subsidiary Amesbury Group, which also provides window and door products. Both are located near several other window manufacturers: Bayport-based Andersen Corporation, Warroad-based Marvin Windows and Doors, and Pella, Iowa-based Pella Corporation.
Tyman’s 2012 revenue totaled $300 million, up 5.8 percent from 2011. Truth Hardware will be Tyman’s 12th U.S. location. In addition to North America, Tyman operates in South America, Asia, Europe, and Australia.
Truth Hardware has been owned by Melrose since 2008. Melrose said that it will use the proceeds of its just-completed Truth Hardware sale to pay down existing loans.